--Expects fourth quarter and full year 2017
revenue to be at or above high end of prior outlook
The Meet Group, Inc. (NASDAQ:MEET), a public market leader in
the mobile meeting space, today pre-released selected preliminary
financial information for its fourth quarter and full year
2017.
Preliminary Financial Results for the fourth quarter 2017. The
Company expects:
- Revenue to be at or above the high end
of its prior outlook of $36.5 million to $38 million; and
- Adjusted EBITDA to be near or above the
high end of its prior outlook of $7.5 million to $9.5 million.
Preliminary Financial Results for the full year 2017. The
Company expects:
- Revenue to be at or above the high end
of its prior outlook of $120.1 million to $121.6 million; and
- Adjusted EBITDA to be near or above the
high end of prior guidance of $28.6 million to $30.6 million.
"We are pleased to deliver strong preliminary results for the
fourth quarter," said Geoff Cook, Chief Executive Officer of
The Meet Group. "Our recent close of the Lovoo acquisition and the
continued rollout of our video platform demonstrate our commitment
to diversifying our revenue mix and delivering on the promise of
livestreaming video.
“While still a small component of total revenue, monetization of
our video product has been accelerating. In the past five weeks,
average revenue per daily active user for MeetMe Live users, or
vARPDAU, in the United States doubled to approximately 20 cents, up
from approximately 10 cents just five weeks ago. We believe this
has been largely driven by the initial success of our new video
gifting product on our MeetMe app. In addition to driving
monetization, we believe the gifting feature also incentivizes
streamers to produce higher-quality content and spend more time
engaging with their audience. In fact, we saw time spent in video
increase following the launch of monetization.
“Building on our early success in video, we recently expanded
our mobile product offerings in Skout with the launch of Skout
Live. Skout Live gives users the ability to broadcast and view
livestreaming video, invite other guest broadcasters into their
live-streams, and earn virtual gifts.”
Early results show increasing user engagement with the
product:
* On average, 24% of Skout’s daily active users currently watch
live-streams* 10% of all Skout live-streamers are already receiving
gifts
The Company has also commenced deployment of the cashout process
on Skout Live, where streamers can exchange a portion of the gift
value they receive for real money. The gifting and cash out
features are expected to be available on Tagged Live in the first
quarter of 2018.
The Company has not yet closed and not yet finalized its
financial statement review process for the fourth quarter and full
year 2017. As a result, the information in this release is
preliminary and based upon information available to the Company as
of the date of this release, and thus remains subject to the
completion of the normal year-end accounting procedures and
adjustments. During the course of the Company’s review process,
items may be identified that would require the Company to make
adjustments, which could result in changes to our preliminary
selected financial information above. As a result, the preliminary
selected financial information above is forward-looking information
and subject to risks and uncertainties, including possible
adjustments to such information. The Company expects to report its
fourth quarter and full year 2017 results in March of 2018.
About The Meet Group
The Meet Group (NASDAQ:MEET) is a fast-growing portfolio of
mobile apps designed to meet the universal need for human
connection. Our apps – currently MeetMe®, LOVOO®, Skout®, Tagged®,
and Hi5® – let users in more than 100 countries chat, share photos,
stream live video, and discuss topics of interest, and are
available on iPhone, iPad, and Android in
multiple languages. Using innovative products and
sophisticated data science, The Meet Group keeps its over 4.5
million mobile daily active users engaged and originates untold
numbers of casual chats, friendships, dates, and
marriages. The Meet Group offers advertisers the opportunity
to reach customers on a global scale and has leading mobile
monetization strategies, including advertising, in-app purchases,
and subscription products. The Meet Group has offices in New Hope,
San Francisco, Dresden, and Berlin. For more information,
visit themeetgroup.com, and follow us
on Facebook, Twitter or LinkedIn.
Forward Looking Statements
Certain statements in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including whether fourth quarter 2017 revenue
and Adjusted EBITDA will be in the projected range, whether full
year 2017 revenue and Adjusted EBITDA will be in the projected
range, whether we will continue the rollout of our video platform
as anticipated, whether we will continue to diversify our revenue
mix and deliver on the promise of livestreaming video, whether
monetization of our video product will continue to accelerate,
whether average revenue per daily active user for MeetMe Live will
continue to increase, whether the gifting feature will incentivize
streamers to produce higher-quality content and spend more time
engaging with their audience, whether time spent in video will
continue to increase following the launch of monetization, whether
the early results show increasing user engagement on Skout Live
will continue and if so at what rates, whether we will complete
deployment of the cashout process on Skout Live as expected, and
whether we will make the gifting and cash out features available on
Tagged Live in the first quarter of 2018. All statements other than
statements of historical facts contained herein are forward-looking
statements. The words “believe,” “may,” “estimate,” “continue,”
“anticipate,” “intend,” “should,” “plan,” “could,” “target,”
“potential,” “project,” “is likely,” “expect” and similar
expressions, as they relate to us, are intended to identify
forward-looking statements. We have based these forward-looking
statements largely on our current expectations and projections
about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy
and financial needs. Important factors that could cause actual
results to differ from those in the forward-looking statements
include the risk that our applications will not function easily or
otherwise as anticipated, the risk that we will not launch
additional features and upgrades as anticipated, the risk that
unanticipated events affect the functionality of our applications
with popular mobile operating systems, any changes in such
operating systems that degrade our mobile applications’
functionality and other unexpected issues which could adversely
affect usage on mobile devices. Further information on our risk
factors is contained in our filings with the Securities and
Exchange Commission (“SEC”), including the Form 10-K for the year
ended December 31, 2016 filed with the SEC on March 9, 2017, our
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2017, June 30, 2017 and September 30, 2017 filed with the SEC on
May 10, 2017, August 4, 2017 and November 9, 2017, respectively.
Any forward-looking statement made by us herein speaks only as of
the date on which it is made. Factors or events that could cause
our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or
otherwise, except as may be required by law.
Regulation G – Non-GAAP Financial Measures
The Company uses Adjusted EBITDA, which is not calculated and
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”), in evaluating its financial and operational
decision making and as a means to evaluate period-to period
comparison. The Company defines Adjusted EBITDA as earnings (or
loss) from operations before interest expense, benefit or provision
for income taxes, depreciation and amortization, stock-based
compensation, warrant obligations, non-recurring acquisition,
restructuring or other expenses, gain or loss on cumulative foreign
currency translation adjustment, gain on sale of asset, bad debt
expense outside the normal range, and goodwill and long-lived asset
impairment charges. The Company excludes stock-based compensation
because it is non-cash in nature. The Company has not included a
GAAP reconciliation of Adjusted EBITDA because such reconciliation
could not be produced without unreasonable effort.
The Company defines Video Daily Active User (vDAU) as a
registered user of one of our platforms who has logged in and
visited the Live feature, either as a broadcaster or viewer, on the
day of measurement. The Company defines Average Video Revenue per
Daily Active User (vARPDAU) as the average daily revenue per
vDAU.
The Company uses these user metrics for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. The Company presents user metrics
because it believes them to be an important supplemental measure of
performance that is commonly used by securities analysts, investors
and other interested parties in the evaluation of companies in its
industry and because it believes that these metrics provide useful
information to investors regarding the Company’s financial
condition and results of operations. The Adjusted EBITDA estimates
provided herein are forward-looking and a reconciliation cannot be
without unreasonable effort therefore no reconciliation is
provided. There is no comparable GAAP measure to vARPDAU provided
in the Company’s financial statements and therefore no
reconciliation is provided.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171219005412/en/
The Meet GroupInvestors:Leslie Arena,
267-714-6418larena@themeetgroup.comorMedia:Brandyn Bissinger,
267-446-7010bbissinger@themeetgroup.com
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